Appears Daiwa is doing it tough as it appears highly geared and...

Appears Daiwa is doing it tough as it appears highly geared and it's investments are not performing to well, and it's own share price has tanked.. Seems ADD shares being held as security for it's borrowings as well as Leeds Shares.

http://www.c-direct.ne.jp/public/english/ue/pdf/10103587/20081024161985.pdf

Interesting that their company focus seems to be in Oil and Gas! Is this what ADD attracted them with?

Don't see that their large stake in ADD gives us any backbone at this time.



[JASDAQ ] Wholesale Trade
3587/JQ I B DAIWA CORP. Trade unit 1,000

(08/11/10)
Recent price7(14:59) 0 0.00 %
Open 7 (09:00) Volume 1,643,000

High 7 (09:00) Turnover 10,299,000

Low 6 (09:11)
Year's High 58 2008/01/07
Previous 7 Year's Low 5 2008/10/24






Strategy

- Establish a dynamic international management style and structure enabling IB
Daiwa to identify opportunities and act on them quickly, effectively and decisively

- Develop and grow a high quality and balanced portfolio of oil and gas exploration
and production assets

- Concentrate in oil and gas exploration and production businesses in the US where
both early monitization opportunities and growth opportunities are available

- Constantly review the portfolio of businesses and assets of IB Daiwa to ensure
shareholder value is maximized

- Develop strategic partnerships


Through its wholly owned subsidiary, Asia Special Situations GJP1 Limited (the �gBorrower�h), the Company
has entered into a loan agreement (the �gLoan Agreement�h) dated 19 June 2008 with ADM Galleus Fund
Limited, an investment fund advised by Asia Debt Management Hong Kong Limited on a US$47,300,000 term
loan (the �gLoan�h) mainly to obtain financings to extinguish the aggregate of approximately US$43 million of
existing liabilities owed by the Group to Bayerische Hypo- und Vereinsbank A.G. and to Coniston International
Capital Limited and to refinance such existing liabilities. The 104,615,384 shares of Leed (the �gLeed Shares�h)
owned by the Company at the time it signed the Loan Agreement, has been pledged as collateral of the Loan
pursuant to the Loan Agreement, and in order to facilitate the drawdown of the Loan, the Company has
exchanged the Leed Shares into new shares of the Borrower, effective 3 July 2008. At the completion of the
exchange, the Borrower has been deemed to be the Company's material subsidiary (�gTokutei Kogaisha�h), as
the Company's equity investment in it has become larger than 10% of the Company�fs share capital amount. For
details of the Loan, please refer to �gAnnouncement on New Term Loan and on New Material Subsidiary�h
dated 19 June 2008.
"


Where ADD fits into Daiwa

http://www.c-direct.ne.jp/public/english/ue/pdf/10103587/20080903143223996.pdf



Consolidated financial statements for FY2008 Q1
(1) FY2008 Q1 Consolidated balance sheet
FY2008
‚p1
(June 30,
2008)
FY2007
Year End
Condensed
Consolidated
Balance
Sheet
�iMarch 31,
2008)
Amount
(1,000Yen)
Amount
(1,000Yen)
Assets
Current assets
Cash and deposits 195,518 121,724
Notes and accounts receivable-trade 158,688 395,774
Finished goods 71,373 68,578
Other 966,089 290,121
Work in process 3,644 4,843
Allowance for doubtful accounts (157) (430)
Current assets 1,395,156 880,611
Noncurrent assets
Property, plant and equipment 408,524 404,961
Intangible assets 110,945 64,155
Investments and other assets
Stocks of subsidiaries and affiliates 5,329,011 5,571,914
Other 937,600 1,040,267
Allowance for doubtful accounts (717,459) (720,189)
Investments and other assets 5,549,152 5,891,991
Noncurrent assets 6,068,622 6,361,108
Deferred assets 709 903
Assets 7,464,489 7,242,623

Overall, does not look good!!